The cost is NZ$17 through the mobile app and NZ$23 through the website. Again, see the guide mentioned above for instructions on how to pay. Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free).
GST (goods and services tax)
We also go over whether it is necessary to tip in New Zealand, as well as advice for international travellers paying taxes for working in New Zealand. In New Zealand, the GST registration threshold for both resident and non-resident businesses is NZ$60,000 in annual turnover. If your company’s taxable turnover exceeds this amount, you must register for New Zealand GST.
- Tipping is not mandatory or expected in New Zealand, but it will be appreciated if you tip to reward exceptional service.
- Providing services to New Zealand businesses generally does not require a GST registration.
- Foreign companies, with no fixed establishment in New Zealand, providing taxable goods or services to New Zealand customers may be required to GST register as a non-resident.
Cruise Arrival and Departure Tax
While we don’t have data on the New Zealand VAT refund program, more info can be obtained from the Inland Revenue. Businesses in New Zealand that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Inland Revenue, and will follow a certain format. The GST registration number format is Taxable persons use tax registration numbers (IRD number) for GST purposes in the format xx-xxx-xxx; effective from 2008, nine-digit numbers are issued to new GST-registered persons. Late filing or payments can result in penalties and interest charges. The IRD imposes a 1% monthly penalty on unpaid amounts and interest charges on outstanding balances.
Finally, for more essential advice for your trip, don’t forget to check out the 31 Tips for Travelling in New Zealand. Tipping is not mandatory or expected in New Zealand, but it will be appreciated if you tip to reward exceptional service. Travellers departing on a cruise ship are charged a Customs levy of NZ$4.55 and a Border Clearance levy of NZ$4.72. Expanding your business to New Zealand requires an understanding of its VAT system, known locally as Goods and Services Tax (GST). This guide delves into the nuances of the New Zealand GST framework, providing you with the knowledge needed to successfully navigate this aspect gross income vs net income of doing business in New Zealand.
Compliance Costs
GST-registered businesses don’t have to pay GST on services or subscriptions from overseas suppliers. You may not realise it, but an arrival and departure tax is added to the cost of your flight or cruise ticket to and from New Zealand. The arrival and departure tax for New Zealand, also known as “border processing levies”, is a fee to pay for the Customs and Biosecurity procedures you go through upon arrival and departure.
Businesses operating in New Zealand that add GST to the price of their goods or services must also register for GST. GST was introduced in conjunction with compensating changes to personal income tax rates and removal of many excise taxes on imported goods. Plus, for more information on work taxes, check out our guide to the New Zealand Work Tax System. Travellers arriving on a cruise ship are charged a Customs levy of NZ$11.48 and a biosecurity levy of NZ$10.58. Travellers departing on airlines or private craft are charged a Customs levy of NZ$4.52 and a Border Clearance levy of NZ$2.94. The reverse charge mechanism is applicable in New Zealand for imported services and certain other situations.
Missing a New Zealand GST return deadline will result in a fine of NZ$250. Returns and payments are due to the IRD by the 28th of the month following the end of the return period. New Zealand’s GST system is straightforward, with a standard New Zealand GST rate of 15% for almost all goods and services, a reduced rate of 9%, and a 0% GST rate. Providing services to New Zealand businesses generally does not require a GST registration. If businesses have a turnover of below NZD 60,000, voluntary registration is allowed in New Zealand. Exports and related services; financial services; land transactions; international transportation.
You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. While you don’t collect any GST when the rate is 0%, you do need to report the sales on your return. A limited number of duty-free stores outside of the airports do this, which we outline in our complete guide to Duty-Free Shopping in New Zealand. No, as a visitor, you cannot claim GST back once you have paid for it. There are no tax refund schemes on GST for visitors to New Zealand.